BYD vs Tesla In India: Why It's Advantage BYD, For Now!
BYD is known for its state-of-the-art battery technology, top-notch powertrains and attractive electric vehicle (EV) offerings. The manufacturer's global EV lineup is quite expansive. BYD is in fact, Tesla's strongest rival globally. In 2024, it leapfrogged the American in annual revenue. It posted $107 billion while Tesla could do just $97.7 billion. BYD posted sales of 1.79 million vehicles (hybrids and EVs combined) globally last year. With Tesla having confirmed its India entry, the BYD vs Tesla fight will intensify in the domestic market as well. However, Elon Musk's EV company could find it hard to win here, and we'll tell you why...
BYD's Time In India So Far: An Overview
BYD started its India operations in 2007, but brought its lineup of passenger electric vehicles to our country only in 2021. The current lineup consists of the eMAX 7, Seal, Sealion 7 and the Atto 3. The manufacturer enjoys a strong foothold in the luxury EV space, and the signature blade battery technology is loved by electric vehicle aficionados.
The biggest hurdle for BYD has, however, been pricing its products right. It has been importing almost all of its products as Completely Built Units (CBU). This has resulted in them having slight price premiums over rivals. This, however, is about to change. BYD has had plans for a new manufacturing facility greenlit by the government.
Setting up a manufacturing unit in India is something BYD has been trying to do for the past two years. However, the Indian government's strict regulations on massive Chinese investment had killed those attempts.
BYD To Set Up New Factory In Telangana
The carmaker is scouting for land in Telangana, and could set it up near Hyderabad. Upon completion, it will become the first BYD factory in India. Discussions are underway, with the state government, about land allocation. Once an agreement is signed and if the project proceeds as planned, BYD will start producing their EVs locally. Doing so will bring down their prices.
Currently, since these are imported from China, BYD vehicles attract high import duties. The price hurdle has limited the manufacturer's market penetration to some extent. Local production will also reduce manufacturing costs, increase sales and enhance competitiveness.
BYD vs Tesla Fight In India
Tesla hasn't revealed anything about commencing local production yet. It however, has no plans to set up a factory initially. Making huge investments in India, is not something the Trump administration could be okay with, given the current geopolitical scenario. Trump wants to bring automotive manufacturing back to America.
To pull off competitive prices for its products, Tesla will need to resort to local manufacturing and work out partnerships with local suppliers. Elon Musk's EV company is also known to be exploring possibilities of contract manufacturing.
An Indian and a Japanese manufacturer are said to be in consideration, whose factories are currently operating below their peak capacities. If this deal goes through, these manufacturing facilities in India will make Tesla cars.
With BYD's factory getting operational, the prices across its lineup will fall. Tesla will have to get its pricing right, to be able to keep pace with the Chinese manufacturer. Even Indian manufacturers like Tata Motors and Mahindra will also face heightened competition, with better-priced BYD EVs on sale.
On the technology front, BYD's battery technology (Blade battery) is superior to those found on most Tesla batteries. These deliver high energy efficiency (range) and have better thermal management.
Things could take a turn only if Tesla finds financially feasible partnerships with local suppliers and inducts extremely high degrees of localisation into manufacturing.